Soaringa collective $62 over the prior four months and reaching a record-high average of$122/tonne in February, California Low-Carbon Fuel Standard, or LCFS, credit pricesslipped in March, losing $6 on the month to post an average of $116/tonne.
released April 12 from theCalifornia Air Resources Board shows that in March, California LCFS prices rangedfrom a low of $77/tonne to a high of $132/tonne. The agency said 95 transfers tookplace during the month, for a total volume of 679,000 credits, up sharply from atotal of 139,000 credits in February and 206,000 credits in January.
The agencyshowed 62 entities were sellers in March, while 28 parties were buyers of CaliforniaLCFS credits. A total of 38 entities were both sellers and buyers of credits duringthe month.
On aquarterly basis, the average price for California LCFS credits was $114/tonne duringthe first quarter of the year, up from $90/tonne during the fourth quarter of 2015and $53/tonne during the third quarter of 2015.
CARB'smonthly statistical data includes transfers that were proposed and completed aswell as those that were proposed and still pending buyer's confirmation in the LCFSReporting Tool and Credit Bank and Transfer System.
CaliforniaLCFS credit prices have been strong over the last several months, particularly afterCARB voted in September 2015 to readopt the state's LCFS regulation with a handfulof changes designed to strengthen the program. The LCFS requires California fuelproviders to calculate the carbon intensity of fuel sold for transportation, includingimported fuel. The program requires the reduction of average carbon intensity offuels by 10% by 2020, imposing a gradual cap on carbon intensity levels in the yearspreceding.
The readoptedLCFS ratchets up the carbon intensity target reduction levels from 2016-2019 sincethe level had been frozen at a 1% cut below 2010 levels in 2013 after legal challenges.With the re-adoption, the reduction in carbon intensity levels is pegged at 2% in2016, 3.5% in 2017, 5% in 2018, 7.5% in 2019 and 10% in 2020 and beyond.
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